BAKU, Azerbaijan, Nov 4
By Natavan Rzayeva - Trend:
European Bank for Reconstruction and Development (EBRD) has confirmed rapid recovery of Uzbekistan’s economy, Trend reports referring to Regional Economic Prospects report of EBRD.
The speed of recovery makes Uzbekistan the fastest growing economy in Central Asia. According to EBRD real GDP growth amounted to 1.7 percent in 2020. In the first half of 2021 this figure reached 6.2 percent.
The Bank is expecting Uzbekistan’s GDP to grow by 6.8 percent in 2021 and 6.0 percent in 2022. Growth is supported by a remittances-led surge in private consumption along with increased investment in infrastructure, much of which has been financed through external borrowing.
According to the report, services expanded by 19.5 percent year-on-year, industrial output by 9 percent, and agriculture by 4.2 percent. Remittances from Russia grew by 35 percent year-on-year in US dollar terms in the first eight months of 2021.
Credit growth accelerated to 22 percent in June 2021 in real terms compared to 12 percent a year ago, reflecting stronger economic activity. Despite expansionary measures, inflation eased from 11.1 percent year-on-year in December 2020 to 10.8 percent year-on-year in October 2021.
Output in Central Asia is expected to grow by 4.9 percent in 2021 and 4.8 percent in 2022, driven by higher commodity prices and a rebound in remittances.